The U.S. Department of Education has asked a California federal court not to jack up the $100,000 sanction it slapped Education Secretary Betsy DeVos with last year after her department violated a court order by billing thousands of students with loans tied to the disgraced and defunct Corinthian Colleges.
Former Corinthian College enrollees who are suing the U.S. Department of Education over a change in its student loan forgiveness policy asked a California federal court on Wednesday to increase a $100,000 contempt fine the court handed to Education Secretary Betsy DeVos last year.
A California federal judge held U.S. Education Secretary Betsy DeVos and her department in contempt Thursday and fined them $100,000 for their "minimal efforts" to comply with the court's order to halt collection of student loan debt from former Corinthian Colleges enrollees.
The Department of Education and Secretary Betsy DeVos are urging a California federal court not to lift a stay in a proposed class action over collection of student loans from former students of Corinthian College, saying the court should wait for the Ninth Circuit to decide on the government's appeal of an injunction order in the case.
The U.S. Department of Education flouted federal law on agency rulemaking and violated the Privacy Act when it suddenly changed its student loan forgiveness policy, a putative class of former students of the now-defunct Corinthian College told a California federal judge Monday, arguing that without a temporary bar on the new policy, they'd be forced to choose between life necessities and loan defaults.